Opening the filing
Exhibit 99.1
EX-99.1 msft-ex99_1.htm EX-99.1 EX-99.1 Exhibit 99.1
Microsoft Cloud and AI Strength Fuels Third Quarter Results REDMOND, Wash. — April 29, 2026 — Microsoft Corp. today announced the following results for the quarter ended March 31, 2026, as compared to the corresponding period of last fiscal year:
• Revenue was $82.9 billion and increased 18% (up 15% in constant currency)
• Operating income was $38.4 billion and increased 20% (up 16% in constant currency)
• Net income was $31.8 billion and increased 23% on a GAAP basis, and increased 20% (up 18% in constant currency) on a non-GAAP basis
• Diluted earnings per share was $4.27 and increased 23% on a GAAP basis, and increased 21% (up 18% in constant currency) on a non-GAAP basis
• Non-GAAP results exclude the impact from investments in OpenAI, explained in the Non-GAAP Definition section below “We are focused on delivering cloud and AI infrastructure and solutions that empower every business to eval-max their outcomes in the agentic computing era,” said Satya Nadella, chairman and chief executive officer of Microsoft. “Our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year.”
“We delivered results that exceeded expectations across revenue, operating income, and earnings per share, reflecting strong execution and growing demand for the Microsoft Cloud,” said Amy Hood, executive vice president and chief financial officer of Microsoft.
The following table reconciles our financial results reported in accordance with generally accepted accounting principles (GAAP) to non-GAAP financial results. Additional information regarding our non-GAAP definition is provided below. All growth comparisons relate to the corresponding period in the last fiscal year.
Income $31,778 $14 $31,792 $25,824 $583 $26,407 23% 20% 20% 18%
Diluted Earnings per Share $4.27 $0.00 $4.27 $3.46 $0.08 $3.54 23% 21% 21% 18% *Adjustment is the impact from investments in OpenAI
Business Highlights Microsoft Cloud revenue was $54.5 billion and increased 29% (up 25% in constant currency), and commercial remaining performance obligation increased 99% to $627 billion.
Revenue in Productivity and Business Processes was $35.0 billion and increased 17% (up 13% in constant currency), with the following business highlights:
• Microsoft 365 Commercial cloud revenue increased 19% (up 15% in constant currency)
• Xbox content and services revenue decreased 5% (down 7% in constant currency)
• Search advertising revenue excluding traffic acquisition costs increased 12% (up 9% in constant currency)
Microsoft returned $10.2 billion to shareholders in the form of dividends and share repurchases in the third quarter of fiscal year 2026.
Business Outlook Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.
Quarterly Highlights, Product Releases, and Customer Stories Every quarter Microsoft delivers hundreds of products, services, and enhancements. These releases are driven by years of significant research and development investments, to empower customers with greater productivity, security, and differentiated value.